GMR Industries' bid for 25-yr lease of sugar unit gets nod

New Delhi, Feb 4 (UNI) GMR Industries Ltd has said its bid for taking on lease a partly completed co-operative sugar factory in Karnataka for a period of 25 years has been approved by the state's Cane Commissioner.

The sugar factory of Sri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit is 80 per cent complete and has an installed capacity of 2,500 tonnes crushed per day (TCD) with a condition to expand to 4,000 TCD and 13 mw baggase based co-generation project.

The lease agreement for the factory is from the season 2006-07 to 2030-31.

As per the bid documents, GMR will complete the balance work of supply, erection and commissioning of the sugar plant within six months from the date of lease and also undertake necessary steps to commence commercial crushing of sugarcane from the sugar season 2007-08.

The company proposes to enter into the lease agreement based on Build, Own, Operate and Transfer (BOOT) basis shortly, a statement said.

UNI